he financial year end forRiverwood Ltdis 30 June.

1. Prepaid insurance as at 1 July 2015 was $4,000. This represents the cost of one year'sinsurance policy that expires on 30 June 2016.
2. Commissions to sales personnel for the five day working week ending 2 July 2016, totaling $9,600, will be paid on 2 July.
3. Sales revenue for the year included $570 of customer deposits for products that have not yet been shipped to them.
4. A total of $900 worth of stationery was charged to the office supplies expense during the year. On 30 June about $490 worth of stationery is still considered useful for next year.
5. The company has a bank loan and pays interest annually (in arrears) on 31 December. The estimated total interest cost for the calendar year ended 31 December 2016 is $500.

Required:

(a.) Show the effect of each of the situations above (a.-e.) on theaccounting equationon 30 June

2016. (5 marks)

(b.) Provide theadjusting journal entryfor each of the situations above (a.-e.) on 30 June 2016. (5 marks)

3